The Chinese Ambassador to Kenya, Guo Haiyan, has strongly refuted claims that Chinese loans are leading Kenya into a “debt trap,” calling the narrative “completely false.” Speaking on Capital in the Morning, Ambassador Guo emphasized that Chinese financing is mutually agreed upon and supports Kenya’s development goals.

• China’s share of Kenya’s external debt is only 13%, with multilateral lenders like the World Bank and IMF accounting for 55%, and commercial creditors for 23%.
• Ambassador Guo Haiyan clarified that China never forces loans on any country and provides financing only upon request.
• Most Chinese loans are concessional, with interest rates below 3%, significantly lower than commercial market rates.